BMO Alto Bank review: Competitive rates and zero fees, yet lacks essential banking features

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BMO Alto Bank, the online division of the well-established BMO Financial Group, offers high-yield savings accounts and certificates of deposit (CDs) that promise attractive rates without the burden of fees or minimum balance requirements.

But, this simplified approach to banking may not meet all your financial needs. In this review, we'll explore the pros and cons of BMO Alto Bank, helping you decide if it's the right fit for you. 

BMO Alto accounts

BMO Alto Bank is an online bank offering a high-yield savings account and CDs. Without a checking account or other banking products, BMO Alto Bank can’t be a one-stop shop for all your banking needs. 

You could open an account with BMO Bank, the traditional arm of BMO Financial Group, but these would require different logins. Bank accounts at BMO Bank and BMO Alto Bank are not connected.

Savings account

BMO Alto’s Online Savings Account is the cornerstone of its offering, providing a competitive 5.10% APY. This high-yield savings account stands out for several reasons:

• No minimum deposit required to open
• No monthly maintenance fees
• No minimum balance to earn the advertised APY
• Unlimited transfers and withdrawals

While the lack of fees and high interest rates are attractive, it's important to note some limitations. You won’t get debit card or ATM access (common for online savings accounts). External transfers will typically take three business days to process, limiting accessibility.

CDs

BMO Alto Bank offers a range of CDs with terms from 6 to 60 months. As of 2024, their CD rates are: 

• 6 months: 4.80% APY
• 12 months: 4.75% APY
• 24 months: 4.00% APY
• 36 months: 4.00% APY
• 48 months: 4.00% APY
• 60 months: 4.10% APY

Key features of BMO Alto CDs include competitive rates and no deposit requirements. Early withdrawal penalties are standard (90 days’ interest for terms 11 months or less, 180 days’ interest for terms 12 months or more). 

The lack of a deposit requirement is particularly noteworthy, as many banks require substantial deposits to open a CD, especially for their best rates.

BMO Alto fees

There are no monthly maintenance fees to maintain an Online Savings Account or CD at BMO Alto Bank. The Online Savings Account also has unlimited withdrawals and transfers, so you won’t need to worry about excessive transaction fees. 

BMO Alto Bank banking experience

Online and mobile banking platform 

One of BMO Alto Bank's most significant drawbacks is its lack of a mobile banking app. In an era where mobile banking is becoming the norm, this omission is notable. Customers can only manage their accounts through the website, which may be inconvenient for those used to banking on the go.

The website is designed with simplicity in mind, which some users may appreciate for its straightforward approach. However, others might find it lacking features and tools commonly available at other online banks.

Customer service

BMO Alto offers 24/7 phone support, which is a strong point in their favor. However, the lack of email or live chat options limits communication channels. This could be frustrating for customers who prefer email or need to send documents electronically.

Account security

Security is a top priority for BMO Alto Bank. They offer:

• FDIC insurance up to $250,000 per depositor
• Digital security monitoring system
• Email alerts for suspicious activity

It's worth noting that FDIC insurance limits are shared between BMO Alto and BMO Bank accounts, which is important for customers with accounts at both institutions.

How BMO Alto Bank stacks up

When compared to other online banks, BMO Alto's rates are competitive, but it lags in terms of features and accessibility. 

While BMO Alto offers higher savings rates, competitors like Ally, Marcus, and Discover offer a wider range of products and services.

Who Is BMO Alto Bank Best For?

BMO Alto Bank is best suited for:

1. Savers looking for high interest rates without fees or minimum balance requirements
2. Customers who don't need frequent access to their savings
3. Those who are comfortable with online-only banking and don't need mobile app access
4. Individuals looking to diversify their savings across multiple banks 

It may not be ideal for:

1. Those seeking a full-service bank for all their financial needs
2. Customers who prefer mobile banking or need frequent access to their funds
3. Individuals who value in-person banking services or a wide range of financial products

How we rated this bank

Every bank review we publish has undergone a rigorous editorial process to ensure accuracy and objectivity. Learn more about our methodology here. 

Here are some of the factors that influenced this bank’s overall score: 

Frequently asked questions

The bottom line

BMO Alto Bank has solid interest rates on its high-yield savings account and CDs, but it needs to do more to stand out. The lack of a checking account and mobile app are big downsides, along with the inability to access your money through a debit card or ATM.

The decision to bank with BMO Alto should be based on your financial needs. If high interest rates and fee-free banking are your top priorities, and you don't mind the trade-offs in terms of accessibility and features, BMO Alto could be an excellent choice to boost your savings.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.